Teak plantation fund accused of fraud

21st August 2009, Comments 0 comments

Investors claimed not to have received any returns since 2007.

The Hague – Dutch financial authority AFM has reported the Groenewoud investment fund to the police on suspicion of fraud.

The provider of teak, vanilla and land investments in Costa Rica went bankrupt in July, and investors have not received any returns since 2007.

Some EUR 30 million are said to have been deposited with the Groenewoud fund.

Teak plantation investments have been problematic in many countries, including India, the Netherlands and the Central American region, according to media reports.

In addition to fraud and other scams, investment risks include drought, forest fires, natural disasters and illegal logging, the AFM reports.

In the 1990s, Dutch investors lost huge sums in funds such as Flor y Fauna, which operated plantations in Costa Rica.

The AFM began supervising teak investment opportunities in 2005, and estimated the plantations attracted investments of approximately EUR 200 million per year in a press release.

Radio Netherlands / Expatica

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